What is GNP?
Gross National Product - the total value of goods and services produced by a country in a year plus income earned by the country’s residents from foreign investments minus income earned within the domestic economy by overseas residents.
What are some indicators of development?
- Income
- Education levels
- Life expectancy
- Infant mortality rate
- HDI
What is the HDI?
Human Development Index
- a measure of disparity between countries
- a composite index
What does the HDI measure?
- life expectancy
- average years of schooling for adults aged 25 years old
- expected years of schooling for children of school-entering age
- GNI per capita
What are the four stages of development in countries?
- Least developed countries
- Developing countries
- Newly industrialised countries
- Developed countries
What does a Gini Coefficient of 0 mean?
Everyone in the country has the same income.
What does a Gini Coefficient of 1 mean?
One person in the country has all the income.
What are government regional development policies?
Government investment to improve conditions in peripheral regions, such as improvements in infrastructure, to help attract business investment.
What is stage 1 in the theory of regional disparities?
Pre-industrial stage.
Regional differences are minimal.
What is stage 2 in the theory of regional disparities?
A period of rapid economic growth characterised by increasing regional economic divergence.
What is stage 3 in the theory of regional disparities?
A stage of regional economic convergence when the significant wealth generated in the most affluent region(s) spreads to other parts of the country.
How does residence affect inequalities within countries?
- gap between core and periphery
- urban/rural disparities
- intra-urban contrasts
- urbanisation of poverty
How does ethnicity and employment affect inequalities within countries?
- discrimination can limit the economic, social, and political opportunities available to disadvantaged groups.
- minorities can be concentrated in a region of a country.
What is the formal sector?
- jobs known to the government department
- generally provide better pay and security
- may have fringe benefits
- include health, education, government, and retail employees
What is the informal sector?
- operates outside official recognition
- generally low-paid and temporary
- poor job security
- ~75% of services
How does education affect inequalities within regions?
higher education = better paid employment
least education = largest families
large family = more debt
What are the four main employment sectors?
Primary (raw materials)
Secondary (industry)
Tertiary (services)
Quaternary (high tech, research, and development)
What is globalisation?
the increasing interconnectedness and interdependence of the world, economically, culturally, politically.
Why are brands important to TNCs?
it identifies them and loows them to be recognised throughout the world.
